Question

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	31,000	33,000	24,000	29,000

The company’s variable selling and administrative expense per unit is $3.00. Fixed selling and administrative expenses include advertising expenses of $8,000 per quarter, executive salaries of $50,000 per quarter, and depreciation of $30,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $7,000 will be paid in the second quarter.

Required:

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)

	Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: Total fixed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses

Answer 1

Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. (Round "Per Unit" answers to 2 decimal places.)

Weller Company Selling and Administrative Expense Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales 31000 33000 24000 29000 117000 Variable selling and administrative expense per unit 3 3 3 3 3 Variable selling and administrative expense 93000 99000 72000 87000 351000 Fixed selling and administrative expenses: Advertising expense 8000 8000 8000 8000 32000 Executive salaries 50000 50000 50000 50000 200000 Depreciation 30000 30000 30000 30000 120000 Insurance 5000 5000 10000 Property taxes 7000 7000 Total fixed selling and administrative expenses 93000 95000 93000 88000 369000 Total selling and administrative expenses 186000 194000 165000 175000 720000 Less: Depreciation -30000 -30000 -30000 -30000 -120000 Cash disbursements for selling and administrative expenses 156000 164000 135000 145000 600000